November 2020 Market Review
November 2020 Review
The month of November continued in alignment with prior months posting increased activity in terms of number of transactions. The results for the GTA as reported by the Toronto Regional Real Estate Board (TRREB) showed a 24.3% increase in number of sold properties relative to November 2019.
The greatest increase in sales activity took place in the surrounding areas of the GTA for the single family detached houses while the 416 area single family detached houses held their ground. The total new listings for the month of November 2020 were higher by 33.5% over November 2019 and the total active listings for the same period were up by 15.4%.
Increasing Sale Prices
The average sale price for all home types for the month of November 2020 was higher by 13.3% when compared to November 2019. When looking at the average price by home type, the detached houses showed the highest increase of 15.2%, followed by semi-detached at 12.9% increase, followed by townhouse at 12.6% increase and finally with the condo apartment segment producing a decrease in average sale price of 2.0%
What trends are we seeing?
The condominium apartment market continues to be the “ opportunity market” for buyer. There is plenty of inventory to choose from thus pushing prices down as supply exceeds demand.
The demand for single family houses continues creating an ideal sellers market for the main stream price categories and a very competitive environment for buyers. The low cost of borrowing is contributing to these market conditions as buyers can move up to the single family detached houses due to low monthly carrying costs.
What lies ahead for the rest of 2020 and beginning of 2021?
Traditionally, due to the Holiday Season, the month of December shows a bit of a slowdown; however, it is very hard to predict what will happen this year, as everything seems to have turned itself upside down with new norms coming into place on a daily basis.
As we move forward to a post-COVID19 environment, we will probably see renewed interest especially in the ownership and lease condominium market, as there will be a resumption of population growth both from immigration and return of non-permanent residents. Furthermore, as social mobility increases on a global scale the upper end real estate markets may see an increase of demand as buyers relocating from overseas will be able to execute transactions in the GTA.
Footnote: Source of statistical data is from the October 2020 Market Watch report of the Toronto Region Real Estate Board (TRREB) MLS.
November 2020 – Market Analysis
Monthly Percentage Change in Number of Units Sold – November 2020 – Illustration A
Month-Over-Month Average Price Percentage Change – November 2020 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – November 2020 – Illustration C
Monthly Percentage Change in Average Sale Price – November 2020 – Illustration D